Abstract
ESCALATION CLAUSES are also known as ‘multi-tiered’, ‘multi-step’ or ‘ADR-first clauses’. They are being increasingly used in international construction1 and engineering contracts.2 Escalation clauses provide that, in the event of a dispute between the parties, dispute resolution is to proceed through a sequence of ‘multi-step levels’ of dispute resolution processes. Arbitral proceedings will not be initiated until the end of such sequence.3 As a preliminary phase to arbitral proceedings, informal discussions or formal negotiations between technicians or decision-makers at management level, mediation proceedings, expert adjudication by a ‘Dispute Review Expert’ (DRE), a ‘Dispute Adjudication Board’ (DAB) or a ‘Dispute Review Board’ (DRB) will usually be agreed upon. The clauses thereby combine adversarial procedures with proceedings derived from the artillery of Alternative Dispute Resolution (ADR),4 resulting in a system of multi-tiered dispute resolution tailor-made for each contract. Arbitration as the ultimate level should only be reached as...
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
